SAN JOSE, Calif. — Using charisma, poise and a smattering of scientific jargon, Elizabeth Holmes persuaded buyers to provide her almost $1 billion to construct Theranos, her blood testing start-up. That all got here crashing down in 2018, after the corporate’s know-how and enterprise dealings have been revealed to have main issues.

On Tuesday, Ms. Holmes used those self same strategies to attempt to persuade a jury that she was not responsible of fraud.

Taking the stand in her personal protection for a 3rd day, Ms. Holmes delivered her most substantial arguments to rebut the 11 counts of fraud that prosecutors have charged her with. She made eye contact with jurors and tilted her head to the aspect whereas making the case that she couldn’t have deliberately deceived anybody about Theranos’s know-how.

Ms. Holmes, 37, alternated between giving authoritative descriptions of Theranos’s scientific analysis and presenting herself as a naïve and bold founder who believed her firm’s know-how labored. She tried to reframe previous incidents as misunderstandings about her intentions. She implied that her board of administrators ought to have given her higher counsel. She urged that she had been too trusting of the medical doctors, scientists and engineers who labored at Theranos.

And she painted herself as an entrepreneur who cared deeply — possibly an excessive amount of — about defending her firm’s model and monetary future, to the purpose that she made selections that have been later skewered by the prosecution as fraudulent.

The protection’s objective all through the total day of testimony was to lift doubts in jurors’ minds in regards to the prosecution’s case: that Ms. Holmes had intentionally claimed Theranos might revolutionize well being care despite the fact that she knew the start-up’s know-how was missing. White-collar prison circumstances are sometimes extremely technical and complex and prosecutors face the burden of proving that the defendant meant to defraud.

“The whole ballgame comes down to knowledge and intent, and it’s the hardest thing for the prosecution to prove,” mentioned Andrey Spektor, a lawyer at Bryan Cave Leighton Paisner and a former federal prosecutor in New York’s Eastern District.

The authorities’s finest proof about Ms. Holmes’s intent is circumstantial, coming from paperwork and the testimony of others, Mr. Spektor mentioned. But Ms. Holmes might testify straight about what she knew and meant, he mentioned.

The high-profile trial stands as a cautionary story for Silicon Valley start-ups, which regularly embrace the identical sort of hustle, ambition and change-the-world idealism that propelled Ms. Holmes to the highest echelons of the business. Despite the tech business’s reliance on hype, few executives have been indicted on prices of mendacity to buyers, making Theranos an outlier.

But as tech start-ups proceed elevating record-breaking sums of money, some normal practices of governance and diligence have gone out the window, buyers and entrepreneurs have mentioned. If Ms. Holmes is convicted and despatched to jail, the decision might solid a pall over the great occasions, placing a brand new sense of warning amongst freewheeling founders.

On Tuesday, Ms. Holmes started a grueling day of testimony at 9 a.m. and stayed on the stand all day. She repeatedly hammered house a principal theme of the protection: that she believed Theranos’s know-how was working. Jurors have been proven emails from numerous scientists and medical doctors who labored within the firm’s lab describing profitable research, trials and different breakthroughs.

Channing Robertson, a Stanford University professor who joined Theranos’s board, advised her that her concepts have been “very promising,” Ms. Holmes testified. One e mail about Theranos’s checks to Ms. Holmes from Ian Gibbons, Theranos’s chief scientist, learn: “Our immunoassays match the best that can be done in clinical labs.”

In a concession to one of many prosecution’s largest items of proof, Ms. Holmes admitted that she had personally added the logos of drug corporations to Theranos’s validation experiences with out their permission. Those experiences documented research of Theranos’s blood checks accomplished in partnership with pharmaceutical corporations and had helped persuade buyers and companions that the start-up was the true deal.

Representatives from the drug makers Pfizer and Schering-Plough mentioned earlier within the trial that their corporations had not written or accepted of the experiences. But Ms. Holmes despatched the experiences with their logos to buyers and companions as a part of her pitch to get them to put money into and do enterprise with Theranos.


Nov. 23, 2021, 7:45 p.m. ET

Ms. Holmes mentioned on Tuesday that she solely added the logos to the experiences to indicate that the work they described was accomplished in partnership with the pharmaceutical corporations. She mentioned she didn’t intend to mislead buyers.

“I’ve heard that testimony in this case and I wish I’d done it differently,” she mentioned.

In response to testimony from lab employees who mentioned they give up in frustration over Theranos’s shoddy science, Ms. Holmes mentioned she by no means compelled anybody to log out on something they didn’t agree with. She added that she wouldn’t have permitted Theranos to run any checks not accepted of by the lab director, including that she was not certified to approve the checks herself.

She additionally dismissed one of many largest claims by prosecutors: that Theranos was secretly doing most of its blood checks on commercially accessible machines from corporations like Siemens, not its personal. Theranos had promoted its small blood analyzers, referred to as Edisons and MiniLabs, as in a position to run tons of of various checks on a drop of blood. But in actuality, it might do solely a dozen checks and had modified Siemens machines to run checks with smaller quantities of blood.

Ms. Holmes mentioned she by no means advised buyers, companions, the general public or her personal board members that the corporate was doing most of its checks on Siemens gadgets as a result of Theranos had made modifications to these machines. She mentioned she nervous Siemens or different opponents would copy these modifications.

“This was an invention that we understood from our counsel we had to protect as a trade secret,” she mentioned.

Ms. Holmes didn’t delve into her relationship with Ramesh Balwani, her boyfriend of greater than a decade who was the chief working officer of Theranos. The pair have been indicted collectively however their circumstances have been break up final 12 months. Mr. Balwani, who goes by “Sunny,” shall be tried subsequent 12 months. Both have pleaded not responsible.

The pair saved their relationship a secret, however Ms. Holmes’s attorneys have mentioned in filings that they anticipated her to inform jurors that Mr. Balwani, who is eighteen years older than Ms. Holmes, emotionally and bodily abused her throughout their relationship. They have additionally mentioned they anticipate to name Mindy Mechanic, an skilled witness centered on abusive relationships, to clarify Ms. Holmes’s accusations.

Mr. Balwani’s position within the alleged fraud has been mentioned almost every single day of the trial, however Ms. Holmes’s testimony solely talked about him when obligatory, similar to to explain an e mail thread used as proof.

At the trial’s begin, Judge Edward Davila of U.S. District Court for the Northern District of California, who’s overseeing the case, instructed jurors to not speculate as to why Mr. Balwani was not current.

At the top of Tuesday’s proceedings, he warned jurors to not focus on the trial with household over the Thanksgiving weekend. “Do your best to pass the mashed potatoes and not engage in conversation with anyone,” he mentioned.

Ms. Holmes’s testimony will resume subsequent week.

Erin Woo contributed reporting.


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